Gold, base metals figure in Teck deals with juniors

The Vancouver-based major mining company recently entered into an option/joint venture agreement with Snowwater Resources (VSE) to earn a 75% interest in that company’s Snowwater Creek gold property near Nelson, B.C.

To earn its interest, Teck is to pay the junior an aggregate of $560,000 in cash payments, spend $2.5 million on exploration, prepare a feasibility report and elect to proceed to place the property into commercial production.

According to Henry Zukowski, president of Snowwater, the property has similar geology to the old LeRoi mine near Nelson. Recent drilling returned several impressive intersections; notably 27.9 ft averaging 0.909 oz gold; 23.1 ft averaging 0.542 oz and 44.8 ft averaging 0.172 oz.

The Snowwater Creek property is in a glacial cirque at the head of Whitewater Creek. High grade gold- bearing float boulders and gold- bearing quartz veins were discovered along this creek in the late 1800s and minor production was achieved from float boulders from 1890 to 1930.

Although Teck is now operator, Zukowski said Snowwater’s previous work programs were focused on locating the source of the high grade, gold-bearing quartz boulders and on exploring the known mineralized quartz veins.

In October Teck entered into an option/joint venture agreement with Doromin Resources (VSE). The company’s key asset is the Cimadoro massive sulphide prospect in the Queen Charlotte Islands of British Columbia.

By taking a series of four private placements of flow-through shares over three years, Teck will have the right to earn a 60% direct property interest by financing the project through to production.

This is an early-stage project in a rugged area. However, Doromin reports that the geology suggests the mineralization to be primary and bedded, “indicating perhaps either a sedimentary exhalative or volcanogenic type of deposit.”

A number of mineralized zones, which contain high grade gold, silver and sulphide (copper-lead-zinc) values, have been found on the property. Teck recently started a drill program.

Teck now has about a 33% interest in Triumph Resources (VSE) which recently completed an initial drill program on its Mt. Alcock project in northern British Columbia. The company acquired the property in a “lottery” from British Columbia’s Ministry of Energy, Mines and Petroleum Resources last June.

This property is 13.6 miles northwest of the Cirque deposit. Being developed by Curragh Resources, Cirque is reported to have reserves of at least 30 million tons grading 8.6% zinc and 3.5% lead.

So far six of nine drill holes have traced the Mt. Alcock barite-zinc- lead horizon on the Mt. Alcock property over a strike length of 755 ft and to a depth of 427 ft. (Within the district barite is generally peripheral to massive sulphides that have significantly higher zinc- lead values.)

The best barite-mineralized intersections to date are: 29 ft of 5.5% zinc, 3.8% lead and 1.2 oz silver per ton; 24 ft of 1.6% zinc, 3.2% lead and 0.8 oz silver; and 35 ft of 3.7% zinc, 3.2% lead and 0.7 oz silver.

An geophysical survey is being completed over the central portion of the 1.6-mile long zinc-lead geochemical anomaly. Drilling will then resume to test the zone for massive zinc-lead sulphides along strike and to depth from presently defined mineralization.

Teck also acquired an 18.6% interest in Grange Gold (VSE) which, through a 50%-owned subsidiary, has interests in about 552 acres of mineral rights adjoining the Cannon Mine in Washington State.

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